The US is reportedly investigating Huawei for "stealing trade secrets" from American business partners in the latest action against the Chinese technology giant.
It found that Huawei misappropriated T-Mobile's trade secrets and breached a supply contract between the two companies, saying T-Mobile should get US$4.8 million in damages.
The Journal said that an indictment could be coming soon on allegations that Huawei stole T-Mobile technology, called Tappy, which mimicked human fingers and was used to test smartphones.
A Huawei spokesman and a spokeswoman for the US attorney in the western district of Washington declined comment.
Attendees pass by a Huawei booth during the 2019 CES in Las Vegas, Nevada, U.S., on January 9.
The U.S. probe into Huawei includes allegations by T-Mobile in a 2014 lawsuit that it stole information, according to the person familiar with the matter.
The company denies this.
Prohibiting any executive agency official from modifying any penalty imposed on Chinese telecommunications companies, their agents, or affiliates until the President certifies that the company has not violated United States laws for one year and is cooperating fully with USA investigations. The two companies were specifically mentioned because they were anxious that Huawei and ZTE's network switches were used to monitor the United States.
Huawei, the second-largest global smartphone maker and biggest producer of telecommunications equipment, has for years been under scrutiny in the United States over purported links to the Chinese government.
Huawei CFO Meng Wanzhou was arrested in the Canadian city of Vancouver on 1 December 2018, reportedly, for failing to comply with the U.S. sanctions against Iran, and now faces extradition to the United States. She is awaiting extradition hearings to the US while living under restrictions in her million-dollar Vancouver home.
The report says Germany is seeking to set security standards Huawei would not be able to achieve, indirectly blocking the company from participating in a 5G bid.
"Huawei is effectively an intelligence-gathering arm of the Chinese Communist Party whose founder and CEO was an engineer for the People's Liberation Army", Senator Cotton wrote in a statement.
U.S. President Donald Trump's administration has pushed European allies to block Huawei from telecom networks, and slapped tariffs on China in part to limit its access to next-generation technologies. As part of the agreement, the US lifted a ban in place since April that had prevented ZTE from buying the USA components it relies on heavily to make smartphones and other devices.